5 Stocks Rising on Unusual Volume - views

WINDERMERE, Fla. (Stockpickr) -- Professional traders running mutual funds and hedge funds don’t just look at a stock’s price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by “superinvestors.”

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it’s always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

Randgold Resources (GOLD) carries out exploration and gold mining activities, with three operating mines in Mali, West Africa: the Morila gold mine, the Loulo mine complex and the Gounkoto mine. This stock is trading up 3% at $98.53 in recent trading.

From a technical perspective, GOLD is gapping higher here with above-average volume and flirting with both its 50-day at $98.87 and its 200-day at $98.90. At last check, GOLD has hit an intraday high of $100.78 and volume is well above its three-month average action of 509,376 shares. This move is quickly pushing shares of GOLD within range of triggering a near-term breakout trade. That trade will hit if GOLD manages to take out some near-term overhead resistance at $102.02 with high volume.

Traders should now look for long-biased trades in GOLD as long as it’s trending above its 50-day at $98.87, and then once it sustains a move or close above $102.02 with volume that hits near or above 509,376 shares. If that breakout hits soon, then GOLD will set up to re-test or possibly take out its next major overhead resistance levels at $105 to $108.16.

Bonanza Creek Energy

Bonanza Creek Energy (BCEI) is an independent energy company engaged in the acquisition, exploration, development and production of onshore oil and associated liquids-rich natural gas. This stock is trading up 2.3% at $31.46 in recent trading.

From a technical perspective, BCEI is bouncing higher here right above some near-term support at $29.80 with above-average volume. This stock has been uptrending strong for the last three months, with shares soaring from its low of $20.83 to its recent high of $33.34. During that move, shares of BCEI have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of BCEI within range of triggering a major breakout trade. That trade will hit once BCEI takes out its all-time high of $33.34 with high volume.

Traders should now look for long-biased trades in BCEI as long as it’s trending above $29.80 or its 50-day at $28.03, and then once it sustains a move or close above $33.34 with volume that hits near or above 533,977 shares. If that breakout triggers soon, then BCEI will have a great chance of tagging $35 to $37 in the near future.

Deckers Outdoor

Deckers Outdoor (DECK) is a designer, producer, marketer and brand manager of innovative, high-quality footwear and accessories. This stock is trading up 41% to $41.56 in recent trading.

Today’s Volume: 1.98 million

Average Volume: 2.31 million

Volume % Change: 50%

Shares of DECK are moving higher today after an analyst at Jefferies said its Ugg boots are still a winter favorite and that colder weather in many parts of the U.S. could lift Ugg sales. The firm maintained its buy rating and raised its price target on the stock by $10 to $60.

From a technical perspective, DECK is ripping higher here right above some near-term support at $39.04 with decent volume. This move is quickly pushing shares of DECK within range of triggering a major breakout trade. That trade will hit if DECK manages to take out some near-term overhead resistance levels at $42.53 to $44.16 with high volume.

Traders should now look for long-biased trades in DECK as long as it’s trending above $39.04 or its 50-day at $38.34 and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.31 million shares. If DECK triggers that breakout, then the stock will set up to re-test or possibly take out its next major overhead resistance levels at $46 to $49.61. Any high-volume move above $49.61 will then put $51.65 to $55 into range for shares of DECK.

From a technical perspective, AMWD is soaring higher here right above its 50-day moving average of $27.84 with above-average volume. This move is starting to push shares of AMWD into breakout territory, since the stock has taken out some near-term overhead resistance levels at $28.86 to $29.28. At last check, AMWD has hit an intraday high of $29.41 and volume is well above its three-month average action of 104,577 shares. This move has also pushed shares of AMWD into new 52-week high territory, which is bullish technical price action.

Traders should now look for long-biased trades in AMWD as long as it’s trending above its 50-day at $16.64, and then once it sustains a move or close above $28.86 to $29.28 with volume that hits near or above 104,577 shares. If AMWD can maintain that trend, then this stock will have a great chance of tagging $33 to $35 in the near future.

From a technical perspective, DDD is bouncing modestly higher here right above $57.50 with decent volume. This stock has been hammered by the sellers of late, with shares dropping from its high of $71.98 to its low of $54.01 with heavy downside volume flows. Despite that drop, shares of DDD have so far held right around its 50-day moving average of $54.03. This move is now quickly pushing shares of DDD within range of triggering a near-term breakout trade. That trade will hit if DDD manages to take out some near-term overhead resistance at $67.73 with high volume.

Traders should now look for long-biased trades in DDD as long as it’s trending above some near-term support levels at $57.50 or $56.16 and then once it sustains a move or close above $67.73 with volume that hits near or above 2.44 million shares. If that breakout triggers soon, then DDD will set up to re-test or possibly take out its next major support levels at $70 to $71.98.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.